High Court of Gujarat
JEWEL CONSUMER PVT. LTD. (SIC. JEWEL CONSUMER CARE PVT. LTD.)versusARVINDBHAI CHHANGBHAI SOLANKI
- Disposal
- PARTLY ALLOWED @ ADMISSION STAGE
- Bench
- HEMANT M PRACHCHHAK
Holding
The High Court modified the Labour Court award to the terms of the settlement, thereby partly allowing the petition.
Summary
Jewel Consumer Care Private Limited filed a petition under Articles 226 and 227 of the Constitution challenging a Labour Court award that ordered its reinstatement of employee Arvindbhai Solanki with 25% back wages. During the pendency of the petition, the parties executed a Memorandum of Settlement under Section 2(p) of the Industrial Disputes Act, 1947, wherein the employer agreed to pay Rs. 4,11,000 to the employee in full and final settlement, waiving the right to reinstatement and back wages. The settlement was presented to the High Court and the parties sought an order that the award be modified in accordance with the settlement terms. The Court examined whether a settlement under Section 2(p) could be approved to alter a pending award and the effect of such settlement on the employee's rights. It held that the award could be modified to reflect the settlement, thereby giving effect to the parties' agreement. Consequently, the petition was partly allowed and the award was altered as per the settlement.
Issues considered
- Whether a settlement under Section 2(p) of the Industrial Disputes Act, 1947 can be approved by the High Court to modify a pending Labour Court award.
- Whether the employee's right to reinstatement and back wages is extinguished by the settlement.
- Whether the petition under Articles 226 and 227 can be partly allowed to incorporate the terms of the settlement.
Legislation cited
Subjects
settlementindustrial disputeLabour Court awardreinstatementback wagesSection 2(p)High Court jurisdictionaward modification
Judgment
C/SCA/15213/2025 JUDGMENT DATED: 24/02/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 15213 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK Sd/-
==========================================================
Approved for Reporting Yes No
No
==========================================================
JEWEL CONSUMER PVT. LTD. (SIC. JEWEL CONSUMER CARE PVT.
LTD.)
Versus
ARVINDBHAI CHHANGBHAI SOLANKI
==========================================================
Appearance:
MR.VARUN K.PATEL(3802) for the Petitioner(s) No. 1
MR DARSHIT D THAKKAR(12434) for the Respondent(s) No. 1
==========================================================
CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK
Date : 24/02/2026
JUDGMENT
1. Present petition is led by the petitioner under
Articles 226 and 227 of the Constitution of India r/w the
provisions of Industrial Disputes Act, 1947 challenging
the impugned award dated 31.1.2025 passed by Labour
Court, Vadodara in Reference (LCV) No.108 of 2017
whereby the Labour Court partly allowed the reference
and granted reinstatement with continuity of service with
25% backwages. Being aggrieved and dissatis ed with
the impugned award, the petitioner has preferred present
petition.
Page 1 of 5
C/SCA/15213/2025 JUDGMENT DATED: 24/02/2026
2. Today, Mr. Patel, learned advocate for the petitioner
tenders a copy of the settlement agreement dated_
13.2.2026 arrived at between the parties, which is taken
on record.
3. It appears that during the pendency of the petition, an
amicable settlement has been arrived at between the
parties. The parties have settled the dispute outside the
Court and have a6ixed their signatures to the settlement
agreement, which is in the vernacular language. The
terms and conditions stipulated in the said settlement
agreement shall form part and parcel of this order and
are hereby reproduced as under:-
-:: Memorandum of Settlement ::-
Memorandum of Settlement under Section-2(p) of the
Industrial Disputes Act, 1947
First Party:-
Jewel Consumer Care Private Limited
Plot No. 209-214, Luna Village, Taluka Padra, District
Vadodara.
Second Party:
Shri Arvindbhai Chhaganbhai Solanki
c/o Jyoti Karmachari Mandal, Vadodara
The following Memorandum of Settlement is entered
into between both the aforementioned parties subject to
the following conditions regarding the award passed by
the Labour Court, Vadodara in Reference Case No.
108/2017 under Section 2(p) of the Industrial Disputes
Act. Both parties signing this agreement accept that they
shall be bound by the implementation of the terms of
this agreement. The Second Party of this case had 6led
Reference Case No. 108/2017 against the First Party
Page 2 of 5
C/SCA/15213/2025 JUDGMENT DATED: 24/02/2026
institution regarding reinstatement in service along with
back wages for the days of unemployment; the award for
the said case was delivered by the Honorable Labour
Court, Vadodara on 31/01/2025. The said award has
been challenged by the First Party in the Honorable
High Court of Gujarat vide R/SCA/15213/2025, for
which a separate settlement has been presented before
the Honorable Court for an 'Award in terms of
Settlement' and has been disposed of accordingly.
In connection with the order of the said Reference Case
No. 108/2017, discussions, deliberations, and
negotiations for a settlement took place between the
Second Party and the First Party company, resulting in a
full and 6nal settlement.
According to the said settlement, it is decided to pay a
total amount of Rs. 4,11,000=00 (Rupees Four Lakh
Eleven Thousand only) to the Second Party by the First
Party as payment for waiving the right to back wages
and reinstatement in service, and including all other
dues and the amount under the passed order, etc., which
is being paid as per the following details:
1. Rs. 3,70,000=00Cheque No. 002219 dated 03/02/2026
2. Rs. 41,000=00 Cheque No. 002220 dated 03/02/2026
(Union Levy)
Rs. 4,11,000=00 Total Amount (Jyoti Karmachari
Mandal)
The cheques are drawn on HDFC Bank, Manjalpur,
Vadodara.
After accepting the amount under this
Memorandum of Settlement, the Second Party shall have
nothing further to receive regarding the award / order
passed in Reference Case No. 108/2017 against the
First Party institution, and no demands or dues of the
Second Party remain pending against the First Party
institution, nor does the right to reinstatement in service
remain, and no dispute remains; and even if any dispute
remained, they are accepted as having been set oB and
paid within the amount paid towards this settlement.
Page 3 of 5
C/SCA/15213/2025 JUDGMENT DATED: 24/02/2026
Upon receipt of the aforementioned amount from the
First Party towards full and 6nal settlement, no other
amount or dues remain for the Second Party, and if any
were remaining, they are to be considered as included in
the aforementioned amount. For this reason and under
these circumstances, the Second Party declares that the
amount of the award passed in Reference Case No.
108/2017 is also included in the amount of this
settlement, and the Second Party admits through this
Memorandum of Settlement that a full and 6nal
settlement has been arrived atv in respect of the award
in Reference Case No. 108/2017, wherein the Second
Party - the workman accepts the waiver of the right to
reinstatement in service.
The above amount has been received towards the
amount claimed by the Second Party in Recovery
Application No. 239/2025 and/or towards the entire
such amount. That is to say, the Respondent has paid the
above amount to the Applicant as a settlement has been
arrived at with the clear understanding that no
implementation of the said award remains pending for
the Respondent. The Applicant shall not have to 6le any
case or proceedings against the Respondent regarding
their termination and/or regarding service and/or
regarding entitlements of rights during service and/or
regarding back wages, and if any case is 6led or
proceeding is initiated, it shall be considered null and
void by virtue of this Memorandum of Settlement.
The Second Party to this Memorandum of Settlement
further declares and accepts that all amounts claimed
under the recovery application shall remain (to have
claimed) towards the full and 6nal settlement against the
order of Reference Case No. 108/2017.
The Second Party accepts through this Memorandum of
Settlement that the First Party has challenged the said
Reference Case before the Honorable High Court of
Gujarat vide R/SCA/15213/2025; and that both parties
accept that by producing this Memorandum of
Settlement before the Honorable High Court of Gujarat
and the Memorandum of Settlement arrived at in the
Page 4 of 5
C/SCA/15213/2025 JUDGMENT DATED: 24/02/2026
pending recovery case before the Honorable Labour
Court, Vadodara, a request shall be made to the
Honorable High Court of Gujarat to obtain an order for
an 'Award in terms of settlement'.
The Second Party accepts through this Memorandum of
Settlement and declares as withdrawn any disputes
raised against the First Party before the Labour Court
and Industrial Court, Vadodara, Government Labour
OBicer, and Assistant Labour Commissioner, and
Deputy Labour Commissioner, or any other Government
or Semi-Government oBice or Court in India.
Furthermore, the Second Party workman gives an
assurance not to raise any dispute before any Court,
Government Labour OBicer, or any other Government
oBicer in the future.
Upon receiving the above amount from the First Party as
full and 6nal settlement, no other amount or dues
remain pending for the Second Party, and if any were
remaining, they shall be considered included in the
aforementioned amount.
This agreement has been made by all parties with their
full wisdom and intellect, in a sober state, without any
kind of pressure, and with full consciousness of their
responsibility, which is admitted and approved by both
parties.
4. In view of the above, the impugned award dated
31.1.2025 passed by Labour Court, Vadodara in
Reference (LCV) No.108 of 2017 is hereby modi ed to the
extent of the terms and conditions stipulated in the
agreement settlement. The petition is hereby partly
allowed.
Sd/-
(HEMANT M. PRACHCHHAK,J)
SURESH SOLANKI
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: SURESHKUMAR MOTIBHAI SOLANKI(HC00208), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 27/02/2026 17:36:07
Page 5 of 5
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